Investors Task Gov't To Expedite Passing Of The Real Estate Bill

Investors in real estate have raised concern over a delayed bill that aims to regulate and register land brokers.

Speaking at the 13th annual international real estate investment conference at Imperial Royale Hotel in Kampala on December 5, Ms Shirley Kongai, the president, Association of Real Estate Agents Uganda (AREA), expressed the need for swift action by the government to approve the bill.

 She noted that the absence of the Real Estate Bill has scared away potential international investors, imposing a big blow to the economic development of the country.

 “We have been asking for this bill since 2008 when the association started.The delay has discouraged investments because for all the time we have attracted international players into the real estate space, they have always asked us to clean our space,” she said.

 The three-day conference themed “Exploring Real Estate Partnerships” was opened by the lands minister, Judith Nabakooba, who promised the investors that the bill would soon be approved.

 The absence of the real estate bill, according to Ms Kongai, is one of the impediments to investors bringing capital into the real estate sector. She revealed that the lack of that law in Uganda has encouraged speculation because they have no standard charges.

Additionally, the consumer does not trust the real estate broker since no law can hold them accountable.

“You cannot develop without following certain rules and you cannot practice without being licensed,” she stressed.

In her opening remarks at the conference, Minister Judith Nabakooba told real estate developers that the long-awaited bill once passed in cabinet, will be sent to parliament for approval. She noted that as a government, they are working tirelessly to institute this law.

“Our Real Estate Bill is going to get out of the way. I remember when I took it to the cabinet, we were guided on several things. After consultations and a number of benchmarks, we are confident that we are good to go back to cabinet,” she said.

 Additionally, the minister noted that financing in the real estate business has been majorly private despite the use of mortgages. Through her ministry, she is looking at innovative ways how to interest the government to finance the real estate sector.

 “We shall work to see how the government can come in to work with you and improve on the sector. We want this sector to keep going and thriving,” Nabakooba added.

According to the UN-Habitant 2020 report, Uganda requires 200,000 units per year if it is to fill the housing deficit of approximately 2.4 million units. She called upon investors in the real estate business to look at their sector in the context of population growth.

Citing Africa’s urban population projected to reach 1.3 billion by 2050, the minister expressed the need to refocus on the real estate industry to ensure that at least each household gets a decent house at an affordable price.

She underscored the power of partnership calling upon all members in the business to pool knowledge and efforts together towards the development of the sector.

 “We are past times when business entrepreneurs viewed each other as competitors instead of partners. The world is now a global market and it is only those that partner and bring synergies together who can survive.” Mr Frank Oti, National Association Realtors (NAR) Global ambassador to Africa, noted that Africa suffers a challenge of generation transfer of wealth which only lies in real estate because many people dealing in that business do not have licenses.

“All real estate dealers must be educated and have a license to have trust in their clients because how can you teach someone something you do not know?” he asked. 

About the Bill

The Real Estate Bill is a law that will govern real estate practice, providing licenses to brokers, managers, agents, and salespersons. It will also provide for the registration of all development projects and the regulation of developers.

 The bill is currently awaiting cabinet approval before being presented to parliament.

It is intended to streamline the sector, curbing land grabbing, addressing issues in the sector that have been infiltrated by fraudsters, regulating unethical behavior among real estate dealers, and bringing the industry in line with international best standards.